Wavestone (WAVE) H1 2026 earnings summary

Executive summary

• H1 2025/26 revenue was €458.1m, stable year-over-year, with a -0.5% organic decrease due to fewer working days.

• Net income rose 12% to €30.4m, with a net margin of 6.6%.

• Consultant utilization rate declined to 71%, while the average daily rate remained robust at €939.

• Staff turnover increased to 13% on a rolling 12-month basis.

• Wivoo acquisition consolidated from June 2025, strengthening digital and AI consulting capabilities and adding 98 employees.

Financial highlights

• Recurring operating profit rose 1% to €47.1m, with a recurring operating margin of 10.3%.

• Earnings per share (diluted) increased to €1.24 from €1.11.

• Cash flow from business activities increased to €21.8m, up from €2.5m.

• Net cash position at €18.0m as of September 30, 2025, down from €25.6m at March 31, 2025.

• Operating profit grew by 3% to €42.8m, after €3.6m amortization of customer relationships and €0.7m other operating expenses.

Outlook and guidance

• Annual objectives for 2025/26: positive organic growth and recurring operating margin around 13% on a constant forex basis, excluding new acquisitions.

• Utilization rate expected to improve in Q3, with hiring focused on high-momentum business units and geographies.

• AI-driven transformation revenue anticipated to reach 14% of total revenue in 2025/26, up from 8% prior year.

• Market environment remains challenging with limited visibility for Q4 2025/26, but some improvement seen in Q3.